New queries, issue 4283

Half a house

We have a client who owns half of a house which is her main residence; her children own the other half. The property was originally owned equally by our client and her husband but when they divorced some years ago her former husband gave his share of the house on the split to the children.

So we take the view that their half is potentially liable to capital gains tax when it is disposed of but will not be subject to inheritance tax on their mother’s death.

Our client pays no rent to her children and she meets all of the outgoings and maintenance costs relating to the property from her own resources.

What we would really like to know is whether there is any way in which she could also be entitled to capital gains tax only or main residence relief in respect...